Showing papers on "Economic problem published in 1987"

Economic Possibilities for Our Grandchildren

Abstract: We are suffering just now from a bad attack of economic pessimism. It is common to hear people say that the epoch of enormous economic progress which characterised the nineteenth century is over; that the rapid improvement in the standard of life is now going to slow down—at any rate in Great Britain; that a decline in prosperity is more likely than an improvement in the decade which lies ahead of us.

Institutions, transaction costs and economic growth

Abstract: This essay develops a theoretical framework which explores the historical obstacles to economic growth. These obstacles are examined in the context of the political/economic institutional framework of economies in history and consequent transaction costs that determine economic performance and growth. The essay concludes with specific suggestions for the study of economic growth.

The economics of health and medical care

Abstract: The new edition of this text (dates of previous editions are not stated) continues its mission as an introduction that assumes no economics background. With the aim of teaching students how to think about economic problems in a systematic way, Jacobs (public health services, U. of Alberta, Canada) a

The Great Depression: Delayed Recovery and Economic Change in America, 1929–1939

Abstract: List of tables List of figures Editors' preface Preface Introduction: the puzzle of the 1930s 1. Long-term economic growth and the problem of recovery in the United States, 1929-39 2. The transformation of American industry in the interwar period 3. A reassessment of investment failure in the interwar economy 4. Technical change during the interwar years 5. The effective demand problem of the interwar period I: cyclical and structural unemployment 6. The effective demand problem of the interwar period II: cyclical and secular changes in final demand 7. New deal economic policy and the problem of recovery 8. Contemporary economic problems in historical perspective Bibliography Index.

The political economy of Israel

Abstract: The resurgence of political economy as an important topic reflects the deep interpenetration of politics and economics. There are few economic issues of consequence that are not shaped by government decisions, and there are few governments whose agendas are not dominated by economic issues. No country reflects the interpenetration of politics and economics as much as Israel.In this analysis, Ira Sharkansky examines the extensive involvement of the Israeli government in the country's economy, reflected in governmental expenditures that exceed the gross national product, intimate links between governmental activity and Israeli's standard of living, high inflation and other economic problems, and policymaking behaviors that include entrepreneurialism and indirection. He explores the strategic points of Israel's political economy, pursuing a qualitative analysis of Israeli problems and strategies for dealing with them. Those interested in policy analysis, political economy, comparative politics, comparative public administration, and Israeli politics will find this book invaluable.Contents: The Political Economy of Israel; What is the Israeli State? How Large is the Government Budget?; Israel's Standard of Living; Israeli Municipalities: Local Initiative amidst Central Controls; Who Gets What amidst High Inflation? Winners and Losers in the Israeli Budget 1978-1984; Conundrums of Israel's Political Economy: Problems without Solutions; Public Sector Entrepreneurialism; Policymaking by Indirection; Perspective on Israel's Political Economy.

Politics and Economic Growth

Abstract: Traditional growth theory viewed economic growth as a resultant of economic factors, in particular capital investment. Development economics implied a broader approach, emphasizing social structure change and human capital. Finally, it was also hinted that political factors could influence the rate of change in the development of the economic system. Testing various theories of economic growth we find that institutional sclerosis is the basic political factor that is related to the process of economic growth. The next step is to analyse how political structures and public policy have an impact on the basic factor in economic growth, viz. investments.

The Regeneration of Local Economies

Abstract: Examines recent initiatives to stimulate local economic regeneration, and the institutional and political constraints on implementing the policies suggested by economic analysis. The study opens with an analysis of the causes of local economic problems. An examination of the organizational framework also casts light on the formidable difficulties of implementation of regenerative policies; in particular, how to concert the activities of the various institutions which are involved. Four major recent attempts at stimulation are then examined in depth: encouragement of private sector involvement in regeneration; enterprise zones; the Merseyside Task Force; and area initiatives in Scotland.

Empowering Rural Families and Communities.

Abstract: During the 1980s a variety of economic forces have contributed to a crisis in agriculture. This economic crisis has led to record numbers of farm foreclosures, closings of rural businesses, and decreased viability of some rural communities. The evidence suggests that these economic problems have led to individual, family, and community problems. An increasing number of local, state, and federal organizations and government bodies have initiated efforts to address these rural concerns. In this article an empowerment strategy will be considered as a possible approach to rural revitalization. Several programs that have utilized an empowerment process will be examined. Finally, additional efforts based on empowerment principles will be suggested.

The Israeli economy : maturing through crises

Abstract: For twenty-five years after its establishment in 1948, Israel was considered an economic miracle, with one of the highest rates of growth in the world. During the 1970s, however, the country became notorious for its economic problems: growth nearly ceased, inflation accelerated, and indebtedness grew. Here is the only comprehensive, up-to-date analysis of this troubled economy. The product of a cooperative research effort, it contains contributions by seventeen top Israeli economists, many of whom have served as advisers to the Israeli government and thus are able to draw on first-hand knowledge of the country's economic administration and policy making. Their interpretation makes use of original empirical data and emphasizes the unique political economy of the country and its institutional structure.The book considers both microeconomic and macroeconomic issues, with sections devoted to growth and structural change, human resources, the public sector (including defense), the problems of an open economy, and the dynamics of inflation. It becomes clear that Israel's current difficulties are rooted in its history and political culture. The authors' prescription for a cure is rigorous: Israel's administrators must be willing to alter their long-standing accommodating monetary policies, and the country must substantially change the organization of its major economic sectors in order to become more self-reliant.The book will be invaluable to scholars, professional economists, bankers, journalists, policymakers, and specialists in foreign affairs. Some sections would be ideal for course use. The less technical chapters such as the Introduction, which provides essential historical and political context will be useful to all general readers who are interested in the challenges facing Israel today."

Urban Land Economics: The Economics of Real Property

Abstract: This text shows how economic analysis can be applied to economic problems connected with land, in both the private and public sectors, and suggests ways in which the existing allocation of land resources can be improved.

The Slack Is Gone: How the United States Lost Its Competitive Edge in the World Economy

Abstract: T mmediately after the Second World War the United States enjoyed a crushing economic advantage because its productive machinery was more modern than anyone else's (and had not been bombed). But by the early 1970s, the forces that would eventually destroy South Chicago were being set in motion around the world. As investment capital became more mobile, companies were freer to shop for locations with lower wages and better "business climates," whether in Tennessee or Taiwan. The oil-price increases engineered by OPEC in 1973, and the resulting inflation, reduced the standard of living for most Americans-but not for workers in the heavy industries, whose unions had negotiated the cost-of-living adjustments known as COLAs. This was a temporary advantage for them and a long term disaster for their industries. During the late 1970s, when chronic inflation eroded the dollar's value in international trade, American goods became artificially attractive to foreign buyers-and American manufacturers were lulled into an artificial sense of security about their ability to compete. They were not prepared to adapt when circumstances changed in the early 1980s and an overvalued dollar drove their foreign customers away.' It is by now no secret that, in recent years, the economic performance of the United States has declined, especially when compared with that of other nations such as Japan. On the other hand, little careful analysis has been done on why this has occurred. Such an analysis is more critical than ever, but before we as a nation can determine how to regain our competitive edge, it is first necessary to understand the factors that shaped the old way of doinig business and why the old paradigm no longer applies. Only then can we look clearly at the new rules and new organizing assumptions that are essential to success in today's environment. In the pages that follow, we will consider the factors that are responsible for the recent economic difficulties of the United States: the evolutionary path of the modern U.S. corporation and the kinds of consumer markets it created to complement its organizational structure; the special kinds of labor-management agreements that evolved as a result; and the role the government assumed in managing the U.S. economy. In addition, the predominant position that until recently the U.S. had commanded in world markets contributed to its failure and, paradoxically, as a result of enormous successes, not failures, in managing the domestic economy, this nation was that much more vulnerable to the various world crises of the mid-1960s and 1970s. Finally, the refusal of Third World countries to play along with the "rules of the game" according to conventional economic theory added to our economic problems. To put it succinctly, the hardships we are currently experiencing are directly traceable to a failure to understand the critical role played by every one of these factors.2

Chapter 1 Advances in regional economics

Abstract: Publisher Summary This chapter focuses on the advances made in regional economics. Regional economics analyzes the spatial dispersion and coherence of economic activities. Although it is a fairly recent discipline, the history of economics shows various early attempts to explicitly address spatial issues—for e.g., in comparative costtheories and international trade theories. Initially, much of the field of regional economics was based on an analogy to general economics, the main difference being the explicit treatment of geographical space as a source of various location–allocation phenomena. Illustrative examples in this context are linear programming models for transportation analysis, spatial substitution problems in neoclassical production theories, inter-regional input-output analysis, and so forth. In a later stage, however, more emphasis was placed on the indigenous features of geographical space and its implications for the spatio-temporal evolution of complex spatial economic systems. Currently, regional economics appears to be a rich discipline with a great many linkages to urban economic problems, transportation problems, and natural resource problems.

The politics of inflation and economic stagnation : theoretical approaches and international case studies

Abstract: The inflation of the 1970s represented the greatest peacetime disruption of the Western economies since the Depression. Even as inflation receded, the recession in its wake brought more joblessness than at any time since the 1930s. The governments of industrialized nations found that the economic policies they had developed since World War II no longer assured price stability or high employment. What are the lessons of over a decade of economic difficulty? In this conference volume, which focuses on aspects of the crisis that economists often presuppose to be beyond control, the authors analyze the political and social underpinning of inflation and recession. Part 1 places the economic problems of the 1970s in the historical context of postwar development and then compares economic and political science analyses of inflation. Part 2 examines how rivalries between social groups affect inflationary processes. One chapter draws on the history of Latin American inflation to suggest the conflicts in play. Two others weigh the role of labor and industry in the formation of economic policy. And another shows how rivalry between countries, like rivalry between classes at home, permitted inflation to rise. The chapters in part 3 contest the claim that big government or big labor causes inflation. Two studies emphasize that a high degree of public expenditure does not itself lead to inflation. Further contributions explore the role of central banks and subject such concepts as the political business cycle to critical analysis. Part 4 comprises case studies about macroeconomic policymaking in four nations: Italy, Germany, Japan, and Sweden. The studies reveal what institutional attributes rendered those countries resistant to inflation or vulnerable to economic setback. In the last part, the editors pull together the findings and lay out the contemporary political feasibility of alternative approaches to macroeconomic management.

Natural resources and economic policy in developing countries

Abstract: This paper argues for the need to design broad economic policy instruments to reverse the trend in many developing countries toward increasing degradation and destruction of natural resources. The natural resource base, often critical for economic development, is in many cases threatened by a rapid population growth, the effect of which is compounded by inadequately controlled land and water use.

Market and Plan under Socialism: The Bird in the Cage

Abstract: In this volume the author provides an analysis of the centrally planned, socialist state economies and their common percentage in the Stalinist Plan introduced in the Soviet Union in the late 1920s. Prybyla first explores the "neoclassical" plan in two variants (conservative and liberal), the "radical" plan (Maoplan), and the Yugoslav experiment (neomarket Yugoplan). He then examines specific countries as their governments search for alternative solutions to the economic problems that plague them. His dynamic presentation of the economic models clearly shows the transformation of the original Stalinist model, reveals the obstacles to reform created by the structural problems that exist within these economies, and demonstrates that inherent deficiencies within the systems must, in time, affect growth and balance.

From the field to the cooking pot: economic crisis and the threat to marketers in Peru

Abstract: In recent years the Peruvian government has faced two related and pressing problems: rising food prices and a proliferation of urban marketers and street vendors The government's solution is to blame the latter for the inflation This paper suggests that while it has served middle class interests to hold small marketers?among whom a majority are poor women?responsible for soaring food costs, closer examination shows that both high prices and the growth of petty commerce are responses to more fundamental economic problems of dependent capitalism in Peru The Peruvian case may be understood in the more general context of the situation confronting many third world countries in which economic underdevelopment is accompanied by an expanding informal sector Of course, there is much that can be said for the irrationality of the present marketing system in Peru?where 99 per cent of retail activity is in the hands of small, independent2 sellers (Esculies Larrabure et al 1977:181)?and we may imagine a situation in which economic planning might result in far smoother distribution Certainly, many marketers would be delighted to leave their market stalls and places in the streets were there employment alternatives open to them But to expect the state in its present form to accomplish successful reform of the system through curtailing petty trade overlooks certain critical factors First, it ignores the role ofthe Peruvian government itself in generating and perpetuating the current economic crisis and it never considers the broader international implications for Peru's food prices Second, this view neglects some important features of the work of marketers within the present structure of underdevelop? ment in Peru; eg, their capacity to keep down prices, their productive contribution to the process of bringing goods to consumers, and their selfsufficiency, which acts to offset the level of unemployment If small-scale marketers provide essential services in Peru, and if petty commerce offers employment?however marginal?to members of society who might otherwise be unemployed, why then has the Peruvian government taken actions that appear to jeopardize the livelihood of marketers? Following some brief background to the current economic crisis in Peru, I discuss the relationship of small marketers to food prices, counterposing the government policy position with my own view Developments in 1977 in the provincial city of Huaraz are then presented to illustrate how national policy directives from Lima resulted in tightening control of commerce at the local level Finally, how national efforts to curtail marketing activity have become an important aspect of repressive government action is considered

A Reason to Look Beyond Neoclassical Economics: Some Major Shortcomings of Orthodox Theory

Abstract: Among the first challenges facing every scientist is the need to choose a framework capable of serving as the methodological and theoretical foundation of his/her research. In economics, neoclassical theory is unquestionably the paradigm most often chosen. This is not surprising, for the price-theoretic approach has come not merely to dominate all economic subfields; it is a perspective being applied with increasing frequency "to every nook and cranny of life" [Miller 1962, p. 65].1 This particular author strongly believes the words of Edwin E. Witte: "Every ... economist should interest himself in practical economic problems" [Witte 1957, p. 14]. While this remark is safe, even in the most orthodox circles, the author also believes Michael J. Piore was quite correct in suggesting that the enterprise of neoclassical economics

Continued efforts to cope with declining resources: selected post-secondary education systems in the United States and Canada, an introductory essay

Abstract: In the mid-1980s, the problems posed by declining resources continue to plague higher education. In this issue, these problems are again examined, this time by comparing patterns of public spending on higher education at the institutional as well as the system level in selected Canadian provinces and U.S. states. A comparative perspective is useful in such an enterprise because retrenchment is occurring throughout North America. Understanding commonalities as well as locating points of difference may illuminate the phenomenon with which we are grappling. Canada and the U.S. are well suited for comparison. The two countries share a common border, many of the same economic problems, and systems of government where authority for higher education is not located at a central or federal level, but rather in the several provinces or states. However, the two countries are dissimilar enough with regard to cultural, political and legal traditions for comparative work to yield new insights into the problems under consideration.

Economic Order and Public Policy - Market, Constitution and the Welfare State

Abstract: It is the purpose of this essay to argue that the lasting economic development problems of Western welfare states can be explained by a basically common pattern of causation; that the pattern begins to reveal itself when taking into account the lack of attraction which any policy to secure a market order normally has for so-called political entrepreneurs; that the diagnosis suggests corresponding structural reforms of the political decisionmaking process which are not very likely to be carried out; that an improvement and legal formation of the political bargaining practice of welfare states cannot provide a workable economic constitution; that there are at least some spontaneous forces at work which may prevent the economic problems of welfare states from becoming insuperable.

A framework for national alcohol programmes in developing countries.

Abstract: Summary Beverage alcohol's per capita production and consumption have been rising throughout developing areas. Many of the countries involved have been previously free from the social, health and economic problems that are now accompanying the production and consumption growth. In order to conceptualize and deal with the problems, particularly from an economic perspective, there is need for an analytic framework that could serve as a basis for policy analysis. The effort herein is to provide such a framework, one that could assist policymakers in determining what, if any, remedial steps to take. Some steps that might be prudent to take from the perspective of improving levels of health and the means of development in poorer countries could be inconsistent with entrenched economic interests, both foreign and domestic. Such potential contradictions highlight the need for an appropriate analytic focus on the problems.

Alternative policies for agriculture in Europe

Abstract: Three different approaches to a reform of the agricultural policies are discussed. Tourniquet solutions to solve the immediate problem of budget control, therapeutic solutions aiming at a stable and prosperous rural community while ensuring the further technological development of agriculture, and a catalytic approach in which agricultural policies are integrated in an overall political effort aimed at the further political and economic integration of the expanded European Community and the tackling of its important social and economic problems. Copyright 1987 by Oxford University Press.

U.S. national economic policy, 1917-1985

Abstract: Rewarding is Campagna's broad-sweep analysis of US macroeconomic policy under the several political regimes since WW I, evaluating whether these policies were 'justified,' 'successful,' and 'rational.' Impressive historical scholarship brings alive the views and personalities of the times and provides immense detail concerning economic settings and problems of each period. Choice This book examines the various economic problems of the past 70 years and critically evaluates what has been done to solve them. Claiming that previous macroeconomic policies have not been successful largely because of political problems, the book presents a cogent argument for the need for new institutions to conduct rational policies in the future.

Western European Adjustment to Structural Economic Problems

Abstract: The study examines the roots and manifestations of the structural problems of the four largest Western European countries, giving particular emphasis to labor market rigidities, excessive growth of government expenditures, industrial policies that targeted a few large firms, and insufficient attention to creating a climate favorable to small enterprise. For the next few years, the most likely prospect is guardedly optimistic. On the whole, there will be a continuing close relationship between the U.S. and Western Europe, marred by tensions and recurring disputes, as Western Europe remains torn between the search for a 'European Solution' and the need to cooperate with the U.S. and Japan. Co-published with the Hudson Institute.

Rates of Innovations and Profits in the Long Wave

Abstract: The severe economic problems in most Western countries during the last decade have helped to reveal a decisive weakness in economic theorizing: none of the different schools of economic thought, whether Marxist or non-Marxist, have a satisfactory theory of long-term economic development There is virtually no economic theory or paradigm which, beyond pure speculation, would allow any well founded economic forecast of what will happen to economic growth and employment in the next ten years or so In judging the character of the present economic crisis, even the most basic questions are still open: Have some medium-term business cycles run out of their normal course since the mid-1970s, due to exogenous shocks and policy mistakes (end of the Bretton Woods system, oil price shock, budget deficits)? Will there be a return towards full employment and price stability once these policy mistakes are corrected and the shocks absorbed, as the McCracken report of the OECD (1977) puts it? Or do the low growth rates since the mid-1970s rather indicate a return to a “normal” long-term growth path once the postwar reconstruction boom had faded (reconstruction hypothesis)? Or, to sketch still another possible interpretation: can the economic problems of the last decade be taken as evidence that capitalism has reached the final stage of its life cycle, its last stage of decadence and stagnation? Are we experiencing the Final Crisis of Capitalism?

Primary health care is viable.

Abstract: 'Selective primary health care' and other recent vertical health strategies have been justified on the grounds that the broad primary health care (PHC) approach cannot be afforded by developing countries in the present constrained economic circumstances. This judgement is too sweeping. A simulated case example is presented, starting with baseline health expenditure data that are representative of the situation in many developing countries. It is assumed that real economic growth occurs and that government funding of health care is allowed to grow in parallel. Two annual growth rates are considered: 2 and 5 per cent. Two restrictive conditions are applied: none of the main health services is subjected to absolute cuts; and, additional funds from existing or new sources of finance are not considered. It is shown that, even with slow growth rates, substantial increases in the funding of priority (rural and PHC) services can be achieved if the growth in expenditures of lower-priority services is curtailed. Also, savings from improved health service efficiency can be channelled to priority services. The message is that the PHC approach is viable even with slow economic growth. What is required is the technical capacity to identify and plan resource flows in the health sector, and the political will to effect resource allocations according to PHC priorities. A strategic policy like PHC should not be 'adjusted' out of effective existence because of reversible economic problems. Rather, actions should be taken to reverse the adverse economic environment. International health-related agencies should continue to support countries to develop national health systems based on PHC, and should campaign for reforms in the world economy to create at least the minimum economic conditions necessary for PHC implementation.